What written promise must a Deck Medic franchisee make regarding participation in competing businesses during the term of the Franchise Agreement?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
You must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with a Deck Medic Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of noncompliance), you will not participate in any competitive business located within and/or servicing customers located within your Operating Territory and a 25 mile radius surrounding your Operating Territory. Further you will not participate in any competitive business located within and/or servicing customers located within the operating territory of any other Deck Medic Business. Your managers will be required by us to sign a confidentiality agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 33–34)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, as a condition of the Franchise Agreement, a franchisee must make a written promise that they will not participate in any business that competes with Deck Medic during the term of the agreement. This non-compete obligation extends beyond the agreement's term.
Specifically, for 24 months after the franchise agreement expires or terminates, the franchisee is prohibited from participating in any competitive business within their Operating Territory and a 25-mile radius around it. This restriction also applies to any competitive business located within or servicing customers within the operating territory of any other Deck Medic franchise.
This means that a Deck Medic franchisee is significantly restricted from engaging in any similar business ventures, both during the active franchise agreement and for two years following its conclusion. This is a fairly standard non-compete clause in franchising, designed to protect the brand and other franchisees from unfair competition by someone who has learned Deck Medic's business model and has benefited from its brand recognition. Franchisees should carefully consider these limitations before investing in a Deck Medic franchise.